China's 50b yuan Ponzi scam highlights growing online risks

Beijing

ONCE China's biggest peer-to-peer (P2P) lending platform, Ezubao collected 50 billion yuan (S$10.9 billion) in less than two years from more than 900,000 investors through savvy marketing and the promise of big returns.

But executives at Ezubao's parent company, Yucheng Group, now say it was "a complete Ponzi scheme" which used investor funds to support a lavish lifestyle, the official Xinhua news agency reported this week.